Some 27% of mortgage holders are worried about losing their home due to unpaid bills as interest rates rise, according to new polling commissioned by the Liberal Democrats.
The new poll reveals homeowners expect their mortgage bills to rise and are worried about losing their home, defaulting on a payment or cutting down on food bills
Almost half of mortgage holders (a staggering 47%) are even worried about cutting down on their food bill as payments spiral in the wake of Liz Truss’s budget last month.
Liberal Democrat Leader Ed Davey said: “These shocking figures reveal the true horror of this Government’s failure to manage Britain’s economy.
“The Conservative Government has added hundreds of pounds to people’s monthly mortgage bills through their disastrous budget.
“Struggling families are being forced to pay this Conservative Property Penalty, with many worried sick about how they will get by or even afford to stay in their homes.”
Furthermore, seven in ten (71%) of those with a mortgage said that they expect to pay more in housing costs over the next year.
Exacerbating this issue, the Bank of England has said that the typical mortgage could rise by roughly £3,000 a year by the end of 2023.
In reaction to these findings, Liberal Democrat Leader Ed Davey has put forward a new proposal: those who have seen their mortgage payments increase by more than 10% of their income could apply for grants of up to £300 a month to help cover the cost of the rise.
This would protect families from falling into arrears or losing their homes because they can’t afford spiralling mortgage rates.
The estimated £3bn cost of this Mortgage Protection Fund would be paid for through reversing Conservative cuts to the Bank Levy and Bank Surcharge since 2016.
The Liberal Democrats are also calling for measures to support renters, including bringing in the long-promised ban on “no fault” evictions and bringing in longer tenancies that protect against unfair rent hikes.
Davey added: “The Government has a responsibility to step in and fix their own mess, by providing grants to those struggling to afford eye-watering mortgage hikes.
“No family should face losing their home because of the Conservative party’s reckless mismanagement of the economy.
“This Mortgage Protection Fund could be paid for by reversing the Conservative party’s unfair and unnecessary tax cuts for the big banks who are making huge profits.”
